New car registrations dropped by 4.85 per cent to 166,877 last year compared to 175,383 in 2010 new figures have revealed.

Scotland had a slightly worse performance than the whole of the UK which saw 4.42 per cent drop with 1,941,253 units registered against 2,030,846 in 2010.

However in December Scotland outperformed the rest of the UK with 3.6 per cent fall to 9489 units compared the same time a year ago. The UK as a whole saw a 3.7 per cent decrease with 119,188 units registered against 123,817 for December last year.

Douglas Robertson, chief executive of the Scottish Motor Trade Association said that given the current economic situation, we should not be too disappointed at the years figures in Scotland.

"2012 is going to be another difficult year but we are aware that there will be a significant number of new and updated models becoming available during the year," he said.

"This together with the improved fuel efficiency that these new models will offer should help to encourage consumers into SMTA members showrooms.

"We also anticipate Government action to assist consumers with financing facilities during the forthcoming year. Together these factors justify the confidence we have that 2012 will see an improvement on 2011."